Saturday, 29 October 2016

EMPLOYERS are considering docking salaries for workers who squander
productive time on cash queues but labour unions say they are prepared
to fight such an “injustice” to the hilt. Cash shortages began in March
this year and have since worsened.Banks are currently limiting withdrawals to between US$30 and US$100
per day. The Employers’ Confederation of Zimbabwe (Emcoz) president, Mr
Joe Kahwema, told The Sunday Mail Business that while industry had been
afforded the opportunity to compete on the local market as a result of
the recent import restrictions, workers have to work even harder than
before.It is believed that through increasing production and improving
capacity and efficiencies, local companies will be able to reduce costs
associated with locally-produced goods.“This (deducting salaries) seems like the natural reaction. We have
to understand that we have to earn the money we receive and if we are to
spend all our time in bank queues, where are we going to get the money
to pay the people?“Zimbabwe has a very low productivity rating in the region. Absence
from work can only worsen the productivity levels and this is how we
price ourselves out of the market.“Banks have ameliorated the situation by promoting plastic money,” said Mr Kahwema.Though plastic money and alternative transacting methods are
considered viable, some services such as public transport and rentals
still heavily rely on cash. Emcoz is currently assessing the impact of
cash-induced absenteeism on productivity. The loss is thought to be
significant.There is debate on whether slashing workers’ salaries in such
circumstances is legal. Last week, Advocate Arthur Marara, a partner at
Mutamangira and Associates, said it is within employers’ rights to
deduct wages that are commensurate with the time spent away from work.Section 12A of the Labour Act specifically spells out that “no
deduction or set-off of any description shall be made from any
remuneration except — (a) where an employee is absent from work on days
other than industrial holidays or days of leave to which he is entitled,
the proportionate amount of his remuneration only for the period of
such absence”.“Essentially, Section 12A (6) is codifying a common law principle of
no work no pay. However, the Labour Act does not provide for ‘hours’ of
absence as in whether an employee can have salaries deducted for the
hours that they would not be at work. That is certainly an arguable
point,” said Advocate Marara.He, however, also noted that it is prudent for employers and
employees to engage in dialogue since cash shortages are a reality. Of
interest is that some retrenchments are now being carrying out in
accordance with the new amendments to the Labour Act.“Employees are now being retrenched in terms of the new amendment as
it has made termination flexible. There are no rules that have been set
out to govern confirmation of decisions from labour officers and
designated agents.“There is still a lot of work to be done, and still need for more
amendments to the Labour Act in order to ensure that disputes are
expeditiously dealt with and disposed of. The labour laws are
circumlocutory and make the whole process expensive and beyond the reach
of many Zimbabweans,” added Advocate Marara.Labour unions opine that reforms to the Labour Act give too much
power to employers since they “make labour a commodity and an employee a
mere production tool”.Some experts say the labour law reforms create a worse situation than
the original provisions of the Labour Act (28:01) in as far as
termination of employment contracts is concerned.Employers have been lobbying Government to amend the Labour Act in
order to ensure that wages and salaries are linked to production. Most
legacy debts carried on companies’ balance sheets are accrued due to
unpaid wages and salaries, especially during times when the companies
were idle.But Zimbabwe Congress of Trade Unions (ZCTU) president Mr Peter
Mutasa told The Sunday Mail Business last week that if employers takes
this route, that will be tantamount to addressing the symptoms and
completely ignoring the problem.“Zimbabweans, collectively, Emcoz included, have the responsibility
to demand policymakers to address the problem. Workers cannot be singled
out for blame or punishment for a problem they have not caused, and
which is affecting every Zimbabwean.“Again, the planned action is not feasible legally for most
collective bargaining agreements provide that workers must be paid
during working hours; hence, the time they spend queuing for their
hard-earned wages must be regarded as working hours.“If the employers want workers to be at work, then they should source
for cash and pay workers their weekly or monthly wages at the
workplaces,” said Mr Mutasa. ZCTU said it is prepared to consider its
options if employers take this route.